Samenvatting
Summary Chapter 2: Data Of Macroeconomics
- Vak
- Instelling
- Boek
This document is a summary comprised of information from the prescribed textbook.
[Meer zien]Voorbeeld 2 van de 8 pagina's
Voorbeeld 2 van de 8 pagina's
In winkelwagen
In winkelwagen
Gekoppeld boek
Titel boek:
Auteur(s):
- Uitgave:
- ISBN:
- Druk:
Meer samenvattingen voor studieboek
-
Test Bank For Macroeconomics, 10th Edition N. Gregory Mankiw
-
ECON 302 - Exam I
Verkoper
Volgen
nf1
Voorbeeld van de inhoud
CHAPTER 2: THE DATA OF MACROECONOMICSGROSS DOMESTIC PRODUCT: EXPENDITURE AND INCOME
- To understand the meaning fully, we turn to national income accounting, the system used to
measure GDP and many related statistics
- GDP measures the flow of money and can be calculated by:
o Total income from production
o Total expenditure from production
- Total expenditure on domestically produced final goods and services
- Total income earned by domestically located factors of production
- Expenditure = income
- Ever rand spent becomes income for another
Circular flow expresses the
inflow/outflow between
firms and households
- A more precise definition of GDP:
Gross domestic product (GDP) is the market value of all final goods and services produced
within an economy in a given period of time
VALUE ADDED
- Value added is the value of output minus the value of the immediate goods used to produce
that output
- The production of goods has multiple stages, and each stage should be accounted for when
working out the value added to the production
- GDP = value of final goods and services = sum of value added at all stages of production
- The value of the final good already includes the value of the immediate goods
- By including immediate goods again -> Double Counting
EXPENDITURE COMPONENT OF GDP
- There are four expenditure components of GDP:
o Consumption (C)
o Investment (I)
o Government spending (G)
o Net exports (NX)
Y = C + I + G + NX
, - (Y) is the value of total output
- (C+I+G+NX) is the aggregate expenditure
- The equation is an identity – an equation that must hold because of the way the variables
are defined
- It is called the national income accounts identity
CONSUMPTION (C)
- The value of goods and services bought by households
- These include:
o Durable goods – goods that last a long time
Cars, home appliances
o Nondurable goods – goods that last a short time
Food, clothing
o Services – intangible items purchased by consumers
Dry cleaning, air travel
INVESTMENT (I)
- Spending on capital, a physical asset used in future production
- Includes:
o Business fixed investment – spending on plant and equipment
o Residential fixed investment – spending by consumers and landlords on housing
units
o Inventory investment – the change in the value of all firms’ inventories
GOVERNMENT SPENDING (G)
- Includes all government spending on goods and services
- Includes such items as military equipment, highways, and the services provided by
government workers
NET EXPORTS (NX)
- NX = exports – imports
- Exports: the value of goods and services sold to other countries
- Imports: the value of goods and services purchased from other countries
- Thus, NX = net spending from abroad on our goods and services
REAL GDP VS NOMINAL GDP
- Economists call the value of goods and services measured at current prices nominal GDP
- Nominal GDP can increase either because prices rise or because quantities rise
- Real GDP is the value of goods and services measured using a constant set of prices and
shows what would have happened to expenditure on output if quantities had changed but
process had not
Nominal GDP = Current year QTY x Current year price
Real GDP = Current year QTY x Base year price
REAL GDP CONTROLS FOR INFLATION
- Changes in nominal GDP can be due to:
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
√ Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, Bancontact of creditcard voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper nf1. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €4,27. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 60434 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen